Retirees with a substantial nest egg and knowledge of the commercial real estate market have long invested in Florida markets such as West Palm Beach. In the past, most of those properties generated revenue from rents and had appreciation potential.
“That all changed with the recession, said Ed Kearney of Kearney Commercial Realty Inc./Sperry Van Ness. “The economic downturn drove tenants out of shopping centers and warehouses, and forced down values of developed and undeveloped properties.”
The investment potential still exists, largely because property prices are much lower, Ed Kearney said. But finding a property that won’t depreciate further is much more difficult. And getting financing has become very tough, Kearney said.
“Given these conditions, an experienced broker can provide services that can help minimize mistakes,” said Kearney, who holds the prestigious CCIM designation in addition to his real estate broker’s license. “Investors should be extra-cautious where they put their money now given the unsteadiness of the economy.”
Ed Kearney of Kearney Commercial Realty Inc./Sperry Van Ness suggests that retirees consider a number of factors before investing:
- • What is the best market? The recession has greatly affected Palm Beach County, driving up the unemployment rate in February 2010 to 12 percent and the number of personal bankruptcies to 429. There are few, if any signs of improvement.
- • Know your business plan. This goes beyond the type of property in West Palm Beach that you are considering. Conduct a feasibility study for your business and a market study for the property you are considering. A broker can help you with the latter by analyzing different markets. And that business plan will be important when seeking bank financing.
- • Know your limits. You may have financial and other restrictions as to how much you can invest that need to be addressed upfront. You may also have a time limit on how long you can or want to hold a property in West Palm Beach. And you may have a personal preference as to how many years you want to spend managing an investment property. A broker can help you map out your one-, three- and five-year plans.
- • Seek professional assistance. The commercial real estate market in West Palm Beach is in a state of flux. A qualified broker can help investors finding prime locations and identifying competitors. Seeking out the services of a professional before taking on such an important project is vital to success.
For more information about buying, selling, or leasing commercial real estate in West Palm Beach, please visit http://www.svnpalmbeach.com, or contact the offices of Edward Kearney of Kearney Commercial Realty/ Sperry Van Ness at 561-616-6262.
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